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Home My WebLink AboutAGENDA REPORT 2023 0201 CCSA REG ITEM 08A POWERPOINTCity of Moorpark User and Regulatory Fee Study City Council Meeting | February 1, 2023 Public Hearing Item •Background •Fundamentals and Terminology •Study Findings and Recommendations •Next Steps MEETING AGENDA 2 CLEARSOURCE PRESENTATION TO THE CITY OF MOORPARK Background Cities collect fees and charges for government services performed at the request of, or specifically for, a particular individual, business, or group… as opposed to services performed for the community as a whole BACKGROUND 4 CLEARSOURCE PRESENTATION TO THE CITY OF MOORPARK •Communities primarily use tax revenues to fund services that provide general (community-wide) benefit •Public works •Public safety •Park maintenance •Communities use fees and charges (direct recovery) to fund services that provide direct benefit •Plan Review •Permitting •Inspection BACKGROUND 5 CLEARSOURCE PRESENTATION TO THE CITY OF MOORPARK •Building Fees -construction permit processing, plan check, and inspection •Planning Fees -entitlement review and review for compliance with zoning code •Engineering and Public Works Fees -engineering review of development-related grading and public improvements. Review and inspection of temporary encroachment in the City right-of-way •Non-Development Related Fees -recreation fees, licensing, permitting, and administrative fees TYPES OF FEES EXAMINED •This update DOES NOT examine taxes, assessments, utility rates, etc. CLEARSOURCE PRESENTATION TO THE CITY OF MOORPARK6 Fundamentals and Terminology •Legal requirements •Encourage direct recovery of costs incurred to serve private interests/benefit or respond to individual actions •Provide opportunity for relief to General Fund or other Funds where costs are incurred •Enable continuity of service levels by improving cost recovery levels MUNICIPAL FEES •Why do Cities Review Fees and Charge Fees for Services? CLEARSOURCE PRESENTATION TO THE CITY OF MOORPARK8 •User fees must be linked to and not exceed the estimated reasonable cost of service •The full cost of service sets the maximum limit of a cost-based fee •Direct program costs for labor, services, and supplies •Facilities overhead •Departmental administration •Citywide administration and central support services •Generally, fees from users of one program may not be used to pay for costs incurred to serve discounted users or users of a different program MUNICIPAL FEES IN CALIFORNIA •The California State Constitution, amended by successive ballot measures, establishes requirements for governmental service fees •Common practices among California cities provides widely accepted standards for meeting Constitutional obligations CLEARSOURCE PRESENTATION TO THE CITY OF MOORPARK9 •Fees proposed are not taxes, as defined by Article 13C of the California State Constitution •Fees are set in accordance with parameters set by Article 13C and by Section 66014 of the California Government Code: •Costs allocated to the payer should bear a fair or reasonable relationship to the payer's burdens on or benefits received from the governmental activity •Fees should not exceed the reasonable cost of providing the service for which the fee is charged FEES ARE APPROVED BY THE CITY COUNCIL The City Council has authority to Directly Approve User and Regulatory Fees and Increases to Fees CLEARSOURCE PRESENTATION TO THE CITY OF MOORPARK10 “Full Cost of Service” •The estimated total cost of a program, inclusive of direct labor, services, and supplies expenses, and associated overhead expenses “Cost Recovery” •The amount of a program’s full cost of service that is supported by the program’s own fee revenues “Subsidy” •The amount of a program’s full cost of service that is supported by other City revenue sources TERMINOLOGY These terms of art have specific meaning across California municipalities and within the City CLEARSOURCE PRESENTATION TO THE CITY OF MOORPARK11 COST OF SERVICE •The cost of service sets the maximum limit of a cost-based fee. It includes: •Direct program costs for labor, services, and supplies •Departmental administration •Citywide administration and central support services CLEARSOURCE PRESENTATION TO THE CITY OF MOORPARK12 100% 0% Co s t R e c o v e r y T a r g e t e d Hourly Rate for Personnel Providing Services Time Required to Perform the Service Cost of Servicex= Fully Burdened Hourly Rates: •Direct and indirect labor costs •Services and supplies •Agency overhead Estimated or Known Times for Providing Services Maximum Fee Amount Exclusively individual benefit Considerable individual benefit Balanced individual and community benefit Considerable community benefit Mostly community benefit Entirely community-wide benefit COST RECOVERY POLICY FRAMEWORK Cost recovery policy reflects local values regarding the presumed beneficiaries for each program area, ranging from community benefit to individual benefit CLEARSOURCE PRESENTATION TO THE CITY OF MOORPARK13 100% 0% Co s t R e c o v e r y T a r g e t e d SUBSIDY •The amount of a program’s full cost of service that is supported by other City revenue sources CLEARSOURCE PRESENTATION TO THE CITY OF MOORPARK14 100% 0% Co s t R e c o v e r y T a r g e t e d Full Cost of Service ($) Revenue from Current Fee ($) City Subsidy Maximum Level of Cost Recovery = 100% Current Level of Cost Recovery = X% Minimum Level of Cost Recovery = 0% Study Findings and Recommendations -Building fees have not been adjusted since 2010. Since 2010 regional costs have increased by 38%. -Fees are proposed to be adjusted by approximately 30%. The proposed change is equivalent to approximately 3% per year adjustment since the most recent adjustment of City fees. -Recovering the costs of building plan review and permitting from building permit applicants is consistent with practices of other municipalities in the region and throughout the State. BUILDING FEES 16 CLEARSOURCE PRESENTATION TO THE CITY OF MOORPARK -For fixed-fee services, planning fees have only been adjusted once since 2010. During that time regional costs have increased by 38%. Accordingly, most of the City’s planning review/permit fees are proposed to adjust by approximately 30%. -The City has consistently updated real-time billing rates for application reviews that use a time and materials billings approach. Accordingly, a minor approximately 5%- 10% adjustment is proposed for planning real-time billing rates of planning service providers. PLANNING FEES 17 CLEARSOURCE PRESENTATION TO THE CITY OF MOORPARK -Most of the City’s fixed fee services, such as encroachment permit fees have not been adjusted since 2008 (15 years). Fees are proposed to be recalibrated to align to the City’s current cost of service. -Less than full cost recovery is targeted for projects that are typically driven by existing homeowners (e.g., residential driveway encroachments) and existing private enterprises (ongoing NPDES inspections). -The City has consistently updated real-time billing rates for application reviews that use a time and materials billings approach. Accordingly, a minor approximately 5%-10% adjustment is proposed for planning real- time billing rates of engineering service providers. PUBLIC WORKS FEES 18 CLEARSOURCE PRESENTATION TO THE CITY OF MOORPARK •Community Services and Recreation Departments throughout the State are facing significant challenges. •Multi-year modification of services due to COVID-19 •Increases in labor, benefit, utility costs, services and supplies, and insurance related costs •Providing access to facilities and programs that are safe to use and align to community standards (health and safety). •Minimum wage increases over the last several years = 25% increase since 2019 •Rates were recently reviewed and updated in 2019. Only minor changes are proposed. Staff will continue to monitor. RECREATION AND FACILITY RENTAL FEES 19 CLEARSOURCE PRESENTATION TO THE CITY OF MOORPARK •Modify Fee Structures for Ease of Administration •Minor Changes to Fees: < $10 Changes •Comply with State Limits on Certain Administrative Fees ADMINISTRATIVE FEES 20 CLEARSOURCE PRESENTATION TO THE CITY OF MOORPARK Regional Fee Comparison Regional Fee Comparison 22 CLEARSOURCE PRESENTATION TO THE CITY OF MOORPARK $578 $684 $700 $752 $1,228 $1,266 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 MOORPARK -CURRENT FILLMORE OXNARD MOORPARK -PROPOSED VENTURA COUNTY THOUSAND OAKS Building Permit and Plan Review Fee -$25,000 Project * City of Simi Valley uses different fee structure. Camarillo information not published (approximate update 2008). Regional Fee Comparison 23 CLEARSOURCE PRESENTATION TO THE CITY OF MOORPARK $1,103 $1,127 $1,255 $1,435 $2,005 $2,069 $0 $500 $1,000 $1,500 $2,000 $2,500 MOORPARK -CURRENT FILLMORE OXNARD MOORPARK -PROPOSED VENTURA COUNTY THOUSAND OAKS Building Permit and Plan Review Fee -$50,000 Project * City of Simi Valley uses different fee structure. Camarillo information not published (approximate update 2008). Regional Fee Comparison 24 CLEARSOURCE PRESENTATION TO THE CITY OF MOORPARK $1,738 $1,803 $2,012 $2,346 $3,087 $3,187 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 FILLMORE MOORPARK -CURRENT OXNARD MOORPARK -PROPOSED VENTURA COUNTY THOUSAND OAKS Building Permit and Plan Review Fee -$100,000 Project * City of Simi Valley uses different fee structure. Camarillo information not published (approximate update 2008). Regional Fee Comparison 25 CLEARSOURCE PRESENTATION TO THE CITY OF MOORPARK $5,659 $5,730 $6,003 $7,811 $8,389 $10,043 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 FILLMORE OXNARD MOORPARK -CURRENT MOORPARK -PROPOSED THOUSAND OAKS VENTURA COUNTY Building Permit and Plan Review Fee -$500,000 Project * City of Simi Valley uses different fee structure. Camarillo information not published (approximate update 2008). Regional Fee Comparison 26 CLEARSOURCE PRESENTATION TO THE CITY OF MOORPARK $9,815 $10,223 $10,675 $11,597 $13,892 $17,443 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 FILLMORE OXNARD MOORPARK -CURRENT THOUSAND OAKS MOORPARK -PROPOSED VENTURA COUNTY Building Permit and Plan Review Fee -$1,000,000 Project * City of Simi Valley uses different fee structure. Camarillo information not published (approximate update 2008). Next Steps •Complete Public Hearing and Determine Whether to Adopt Updated Schedule of Fees •If Adopted, Fee Changes Are Proposed to Be Effective July 1, 2023 NEXT STEPS 28 CLEARSOURCE PRESENTATION TO THE CITY OF MOORPARK Questions or Feedback